Problems of Scarcity

Millions of people suffer from economic privation. Some countries have ample natural resources but lack sufficient capital to develop an adequate transportation system and a strong industrial base. The problem is exacerbated when these countries have large populations. For example, China, with over 1.3 billion people, has ample natural resources, but lacks sufficient capital for a nation its size. China has experienced a dramatic increase in total production in recent years due to a shift toward a more market-oriented economy.